Life life Insurance

[Nick bernasor]

HI! I have a mortgage Temporary protection plan cover both life with my wife. My wife was passed away and i am claiming our home life cover. Just wondering if the Insurance company will pay only the remaining balance of my mortgage or they will pay the whole amount insured. Thanks.

 

[huskerdu]

I'm sorry for your loss. Its a difficult time to have to negotiate these issues.

Some policies are remaining balance, some are the complete amount.
You will need to see your policy details,

 

[Steven Barrett]

Sorry to hear about your loss.

Mortgage protection plans assume an interest rate of 6% and decrease over time using that assumption. As interest rates have been below that for a number of years, there should be a surplus amount of cover. So after the bank have taken the money they need to discharge the debt, the surplus will be paid to you. The same applies if you had a level term policy (one that stays the same). The bank only take what they need and the actual cover does not decrease in line with your actual mortgage, just assumptions.

Steven
www.bluewaterfp.ie